UPDATE 1-In Podesta, a Keystone skeptic returns to White House

WASHINGTON Dec 11 (Reuters) - John Podesta's return to the
White House could dim prospects for the Keystone XL pipeline's
approval, environmentalists said Wednesday, as the Democratic
Party elder and Keystone critic crafts policies to curb climate
change.

Podesta, who was chief of staff under President Bill
Clinton, will have the title "counselor to the president" and
chiefly advise President Barack Obama on energy and climate
change issues, the White House said this week.

In the past, Podesta has aligned himself with
environmentalist foes of TransCanada Corp's 1,200-mile
(1,900-km) pipeline that would carry 830,000 barrels a day of
oil sands crude from western Canada to the Gulf Coast.

The $5.4 billion link between Alberta oil fields and Texas
refiners is expected to spur production of a fuel that
environmentalists say worsens climate change.

On Wednesday, the White House said Podesta would not get
involved in the question of whether to allow Keystone XL because
of his well-known opposition to the project.

"He felt it was most appropriate to basically send a signal
early on that this is not something that will be part of his
portfolio," said White House spokesman Josh Earnest.

Some environmentalists, however, said Podesta's concern
about climate change would likely infuse discussions about
Keystone XL.
Continued...